A panel of three judges from the U.S. Sixth Circuit Court of Appeals has denied the city of Cleveland's attempt to bring to trial its lawsuit against 22 financial institutions involved in subprime lending.
The city had originally filed its suit in January 2008 against 21 companies, claiming the firms were responsible for damages the city has absorbed in relation to boarding and demolishing abandoned and vacant properties. The three judges ruled unanimously against the action, stating that the link between the firms' subprime activities and the city's damages was ‘too indirect,’ according to a Reuters report.
The city's law director, Robert Triozzi, said Tuesday that the city plans to bring its appeal before the entire Sixth Circuit, The Plain-Dealer reports.
‘When you look at our complaint and the allegations we made, it has become accepted throughout this country as to the consequences of the actions of these Wall Street firms,’ Triozzi told The Plain-Dealer.
The defendants named in the case include many of the nation's largest firms, including Bank of America, Citigroup, Wells Fargo, JPMorgan Chase, Goldman Sachs, Morgan Stanley and Merrill Lynch.